Classification

Financial instruments are required to be classified into three categories and thereby accounted for as suggested in the Phase 1 section of the IFRS 9 guidelines. The three categories are the following:

• Amortized Cost (AMRTCOST)
• Fair Value through Other Comprehensive Income (FVOCI)
• Fair Value through Profit and Loss (FVTPL)

Financial assets must undergo the Business Model test (BM) and Cash Flow Characteristics test (SPPI) and Financial Liabilities must undergo the Business Model Test for classifying into the aforementioned categories.